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Question 112

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Use the information below to answer the following question(s) .
Fun 'N' Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, "Conversion Costs." Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing.
Use the information below to answer the following question(s) . Fun 'N' Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, Conversion Costs. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing. -Acme, Inc., manufactures air compressors. For July there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, conversion costs. Journal entries are recorded when materials are purchased and when units are transferred to finished goods. Conversion costs are allocated under backflush costing. Direct materials are budgeted at 5 units per compressor; however, actual results reflect that 6 units were required per compressor. Under allocated or Over allocated Conversion Costs are written off against Cost of Goods Sold on a monthly basis. The difference between actual conversion costs incurred and standard conversion costs allocated is $50,000. Which of the following journal entries properly reflects Acme's write- off of conversion costs? A) B) C) D) E)
-Acme, Inc., manufactures air compressors. For July there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, "conversion costs." Journal entries are recorded when materials are purchased and when units are transferred to finished goods. Conversion costs are allocated under backflush costing. Use the information below to answer the following question(s) . Fun 'N' Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, Conversion Costs. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing. -Acme, Inc., manufactures air compressors. For July there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, conversion costs. Journal entries are recorded when materials are purchased and when units are transferred to finished goods. Conversion costs are allocated under backflush costing. Direct materials are budgeted at 5 units per compressor; however, actual results reflect that 6 units were required per compressor. Under allocated or Over allocated Conversion Costs are written off against Cost of Goods Sold on a monthly basis. The difference between actual conversion costs incurred and standard conversion costs allocated is $50,000. Which of the following journal entries properly reflects Acme's write- off of conversion costs? A) B) C) D) E) Direct materials are budgeted at 5 units per compressor; however, actual results reflect that 6 units were required per compressor. Under allocated or Over allocated Conversion Costs are written off against Cost of Goods Sold on a monthly basis. The difference between actual conversion costs incurred and standard conversion costs allocated is $50,000.
Which of the following journal entries properly reflects Acme's write- off of conversion costs?


A) Use the information below to answer the following question(s) . Fun 'N' Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, Conversion Costs. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing. -Acme, Inc., manufactures air compressors. For July there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, conversion costs. Journal entries are recorded when materials are purchased and when units are transferred to finished goods. Conversion costs are allocated under backflush costing. Direct materials are budgeted at 5 units per compressor; however, actual results reflect that 6 units were required per compressor. Under allocated or Over allocated Conversion Costs are written off against Cost of Goods Sold on a monthly basis. The difference between actual conversion costs incurred and standard conversion costs allocated is $50,000. Which of the following journal entries properly reflects Acme's write- off of conversion costs? A) B) C) D) E)
B) Use the information below to answer the following question(s) . Fun 'N' Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, Conversion Costs. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing. -Acme, Inc., manufactures air compressors. For July there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, conversion costs. Journal entries are recorded when materials are purchased and when units are transferred to finished goods. Conversion costs are allocated under backflush costing. Direct materials are budgeted at 5 units per compressor; however, actual results reflect that 6 units were required per compressor. Under allocated or Over allocated Conversion Costs are written off against Cost of Goods Sold on a monthly basis. The difference between actual conversion costs incurred and standard conversion costs allocated is $50,000. Which of the following journal entries properly reflects Acme's write- off of conversion costs? A) B) C) D) E)
C) Use the information below to answer the following question(s) . Fun 'N' Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, Conversion Costs. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing. -Acme, Inc., manufactures air compressors. For July there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, conversion costs. Journal entries are recorded when materials are purchased and when units are transferred to finished goods. Conversion costs are allocated under backflush costing. Direct materials are budgeted at 5 units per compressor; however, actual results reflect that 6 units were required per compressor. Under allocated or Over allocated Conversion Costs are written off against Cost of Goods Sold on a monthly basis. The difference between actual conversion costs incurred and standard conversion costs allocated is $50,000. Which of the following journal entries properly reflects Acme's write- off of conversion costs? A) B) C) D) E)
D) Use the information below to answer the following question(s) . Fun 'N' Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, Conversion Costs. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing. -Acme, Inc., manufactures air compressors. For July there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, conversion costs. Journal entries are recorded when materials are purchased and when units are transferred to finished goods. Conversion costs are allocated under backflush costing. Direct materials are budgeted at 5 units per compressor; however, actual results reflect that 6 units were required per compressor. Under allocated or Over allocated Conversion Costs are written off against Cost of Goods Sold on a monthly basis. The difference between actual conversion costs incurred and standard conversion costs allocated is $50,000. Which of the following journal entries properly reflects Acme's write- off of conversion costs? A) B) C) D) E)
E) Use the information below to answer the following question(s) . Fun 'N' Games manufactures various board games. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, Conversion Costs. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing. -Acme, Inc., manufactures air compressors. For July there were no beginning inventories of direct materials, and no beginning or ending work in process. Only one indirect manufacturing cost category is currently in use, conversion costs. Journal entries are recorded when materials are purchased and when units are transferred to finished goods. Conversion costs are allocated under backflush costing. Direct materials are budgeted at 5 units per compressor; however, actual results reflect that 6 units were required per compressor. Under allocated or Over allocated Conversion Costs are written off against Cost of Goods Sold on a monthly basis. The difference between actual conversion costs incurred and standard conversion costs allocated is $50,000. Which of the following journal entries properly reflects Acme's write- off of conversion costs? A) B) C) D) E)

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